NEW YORK (TheStreet) -- Skyworks Solutions (SWKS) shares are climbing 6.4% to $40.45 in after-market trading today following the release of the company's first quarter 2014 earnings report.
The analog semiconductor manufacturer posted revenue of $481 million in the quarter, a year over year quarterly increase of 13%, beating analysts consensus revenue estimates of $470.25 million.
The company surpassed its own guidance by posting operating income of $130.4 million, or 62 cents per share, 3 cents higher than its guidance.
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TheStreet Ratings team rates SKYWORKS SOLUTIONS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SKYWORKS SOLUTIONS INC (SWKS) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SWKS's revenue growth has slightly outpaced the industry average of 1.5%. Since the same quarter one year prior, revenues rose by 11.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SWKS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.52, which clearly demonstrates the ability to cover short-term cash needs.
- Powered by its strong earnings growth of 44.11% and other important driving factors, this stock has surged by 65.48% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SWKS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- SKYWORKS SOLUTIONS INC has improved earnings per share by 44.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SKYWORKS SOLUTIONS INC increased its bottom line by earning $1.44 versus $1.06 in the prior year. This year, the market expects an improvement in earnings ($2.60 versus $1.44).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Semiconductors & Semiconductor Equipment industry average. The net income increased by 42.1% when compared to the same quarter one year prior, rising from $66.50 million to $94.50 million.
- You can view the full analysis from the report here: SWKS Ratings Report